Define Foreclosures
Questions about carrying costs for a bank-owned foreclosure property?
I can’t find any internet sources on this so hopefully someone here can help. I am more than willing to do the calculations myself if someone has a formula for this.
If a bank foreclosed on a mortgage that was somewhere between $150-160,000, what would it cost that bank per month in carrying costs?
If you can’t give me a number, can you at least define “carrying costs?” I understand that it’s the cost of owning the home until it sells, but what items/expenses make up the actual cost? Is it just the foregone mortgage payments?
Thanks so much in advance!
for the most part, the Carrying Cost is the mortgage and interest being paid for property. Most of the time, in commercial real estate, properties are purchased with IO’s interest only mortgages for a short period of time with the principal due at maturity. So in this case, the carrying cost would be the interest.
With out rambling on for too much longer, the Carrying Cost is the amount being paid each month to carry or own the property.
I hope this helps.
Roy Oppenheim Talks About Florida Short Sales and Foreclosures in Today’s Economy
